FINC 371 UPDATED EXAMS TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Computing Property Tax (3) - ✔✔1. Market Value * Assessment Ratio = Assessed
Value
2. Assessed Value - Exemptions = Taxable Value
3. (Taxable Value / 1000) * Millage Rate = Property Tax
✔✔Administering the Property Tax (3) - ✔✔1. Property Value Assessment
2. Development of the Budget and Tax Rate
3. Tax Billing and Collection
✔✔Property Value Assessment - ✔✔- Estimating market value for all properties within
jurisdiction
- Performed by government official called Assessor (Gatekeeper), Property Assessor, &
Property Appraiser
✔✔Tax Billing and Collection - ✔✔- Procedures vary, typically annual or semi-annual
billing cycle
- If not paid, government can place a lien on the real estate
- If left unpaid for a certain period of time, property can be sold at public auction to fulfill
the lien
, ✔✔Development of Budget and Tax Rate - ✔✔- The amount of revenue coming from
other taxes and non-tax sources is subtracted from the total budget
- The remainder is collected in property taxes
- This amount is divided by total taxable value of all properties within jurisdiction
✔✔Eminent Domain - ✔✔Government can acquire property for public use, even if the
owner doesn't want to sell, as long as the owner receives just compensation
✔✔Eminent Domain Condemnation Proceeding - ✔✔Government establishes that land
is needed for public use or benefit and that the amount of money is reasonable value
✔✔Eminent Domain Inverse Condemnation - ✔✔When a property owner, seeking to
force payment for taking of property, starts condemnation proceedings against the
government, contending that a government action has destroyed or reduced the value
of the property to an extent that the government has effectively taken away that property
away from the owner
✔✔Police Powers (2) - ✔✔1. Enable governments to have the power of regulation
2. To protect the public HEALTH, SAFETY, MORALS, and GENERAL WELFARE
- Justification for zoning laws for real estate (architectural requirements)
✔✔Comprehensive General Plan - ✔✔- To ensure that urban areas develop in an
orderly fashion, local governments develop this statement of policies for future
development of a community
1. Plan ahead for 15-25 years
2. Typically contains:
- Analysis of projected economic development and population change
- Transportation plan to provide circulation
- Public facilities plan
- Land-use plan
- Official map
✔✔Zoning - ✔✔Process of dividing a community's land into districts in which only
certain uses of the land are allowed
- 1st zoning ordinance was in NYC 1916 restricting use and height of buildings
✔✔Type of Use (2) - ✔✔1. Residential, Commercial, Industrial
2. Special Purpose
- Agricultural, Floodplain, Historic preservation
✔✔Intensity of Use - ✔✔The extent to which land in the zone may be used for its
permitted purposes
- Aka Development Density
1. Height and Bulk Limitations
QUESTIONS AND ANSWERS SURE A+
✔✔Computing Property Tax (3) - ✔✔1. Market Value * Assessment Ratio = Assessed
Value
2. Assessed Value - Exemptions = Taxable Value
3. (Taxable Value / 1000) * Millage Rate = Property Tax
✔✔Administering the Property Tax (3) - ✔✔1. Property Value Assessment
2. Development of the Budget and Tax Rate
3. Tax Billing and Collection
✔✔Property Value Assessment - ✔✔- Estimating market value for all properties within
jurisdiction
- Performed by government official called Assessor (Gatekeeper), Property Assessor, &
Property Appraiser
✔✔Tax Billing and Collection - ✔✔- Procedures vary, typically annual or semi-annual
billing cycle
- If not paid, government can place a lien on the real estate
- If left unpaid for a certain period of time, property can be sold at public auction to fulfill
the lien
, ✔✔Development of Budget and Tax Rate - ✔✔- The amount of revenue coming from
other taxes and non-tax sources is subtracted from the total budget
- The remainder is collected in property taxes
- This amount is divided by total taxable value of all properties within jurisdiction
✔✔Eminent Domain - ✔✔Government can acquire property for public use, even if the
owner doesn't want to sell, as long as the owner receives just compensation
✔✔Eminent Domain Condemnation Proceeding - ✔✔Government establishes that land
is needed for public use or benefit and that the amount of money is reasonable value
✔✔Eminent Domain Inverse Condemnation - ✔✔When a property owner, seeking to
force payment for taking of property, starts condemnation proceedings against the
government, contending that a government action has destroyed or reduced the value
of the property to an extent that the government has effectively taken away that property
away from the owner
✔✔Police Powers (2) - ✔✔1. Enable governments to have the power of regulation
2. To protect the public HEALTH, SAFETY, MORALS, and GENERAL WELFARE
- Justification for zoning laws for real estate (architectural requirements)
✔✔Comprehensive General Plan - ✔✔- To ensure that urban areas develop in an
orderly fashion, local governments develop this statement of policies for future
development of a community
1. Plan ahead for 15-25 years
2. Typically contains:
- Analysis of projected economic development and population change
- Transportation plan to provide circulation
- Public facilities plan
- Land-use plan
- Official map
✔✔Zoning - ✔✔Process of dividing a community's land into districts in which only
certain uses of the land are allowed
- 1st zoning ordinance was in NYC 1916 restricting use and height of buildings
✔✔Type of Use (2) - ✔✔1. Residential, Commercial, Industrial
2. Special Purpose
- Agricultural, Floodplain, Historic preservation
✔✔Intensity of Use - ✔✔The extent to which land in the zone may be used for its
permitted purposes
- Aka Development Density
1. Height and Bulk Limitations
